Page 11 - The Insurance Times September 2022

LIC shares drop even as at Rs 2.11 trillion in March quarter. The Only the debutant LIC, which came out
net premium income during Q1FY23 of with its IPO last fiscal, was ranked higher
death claims fall 20%
Rs 98,351.76 crore, was about 20 per than Reliance among the Indian
Shares of LIC fell over 1 percent trade cent higher y-o-y. On a sequential ba- corporates.
even as LIC said it has witnessed a de- sis, net premium was lower by about
cline of nearly 20 percent in death 32 per cent.
LIC hires milliman to derive
claims in the first quarter of this fiscal
The first-year premium for the report-
with the Covid impact seen to be ebb- its embedded value
ing quarter came in at Rs 7,429 crore
ing, though the amount is still higher LIC has roped in Milliman Advisors to
as against Rs 5,088 crore in the year-
than pre-2020 levels. derive its embedded value (EV) as on
ago period.
September 2022. Milliman had ascer-
In the June quarter of the previous fis-
tained the embedded value for the in-
cal, settlement of death claims was to
LIC breaks into fortune 500 surer before its initial public offering
the tune of Rs 7,111 crore, which for
Q1 of this year was Rs 5,743 crore, LIC list (IPO).
Chairman M R Kumar said in a post- Embedded value is a key metric that
LIC has broken into the latest Fortune
earnings call with analysts. indicates an insurance company's per-
Global 500 list, while Reliance Industries
has jumped 51 places. formance, and is the sum of adjusted
LIC Q1 net surges multi- net worth and value of in-force business
The nation's biggest life insurer with
or estimated future profits. In July, LIC
fold to Rs. 682.8 crore revenue of USD 97.26 billion and a profit
had announced it would disclose its
LIC reported a multi-fold increase in net of USD 553.8 million, was ranked 98th
embedded value twice a year against
profits to Rs 682.88 crore for the quar- on the just released Fortune 500 list.
the industry practice of releasing it once
ter ending June compared to a profit of
Reliance Industries jumped 51 places to a year.
Rs 2.94 crore in Q1FY22. It may be re-
104 on the 2022 list.
As the government and LIC had decided
called that business activity in the coun-
This is the first outing of LIC on the list, to declare the insurer's Milliman Advi-
try had come to a virtual standstill in
which ranks listed companies by sales. sors in March 2022 in its effort to im-
the June 2021 quarter during the sec-
Reliance, with revenue of USD 93.98 prove transparency in reporting by the
ond wave of the Covid pandemic. Seen
billion and a net profit of USD 8.15 bil- organisation, Milliman was also asked
sequentially, LIC's performance was less
lion in the latest year, has been on the to compute the key metric as of March
impressive as the insurer had posted
list for 19 years. 2022. Now, the reporting actuary would
profits of Rs 2,371.55 crore in the three
months to March. The list, topped by US retailer Walmart, ascertain the EV of India's largest in-
surer for September 2022 as well, an
The total income stood at Rs 1.68 tril- has nine Indian companies - five of them
official told.
lion as against Rs 1.54 trillion in the year- state-owned, and four from the private
ago period, LIC said. Total income stood sector. Milliman Advisors was appointed as the
The Insurance Times, September 2022 11